. /.  RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SAM/18 
15 December 2010 
 
 (10-6751) 
Working Party on the 
Accession of Samoa Original:   English 
 
 
 
ACCESSION OF SAMOA 
 
Questionnaire on State Trading  
 
 
 The following submission, dated 8 December 2010, is being circulated at the request of the 
Government of Samoa.  
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I. ENUMERATION OF STATE TRADING ENTERPRISES 
 A. Identification of state trading enterprises. 
  Exxon Mobil and Petroleum Products Supplies Ltd. 
 B. Description of products affected (inc luding tariff item number(s) encompassed in 
product description). 
  The products include Diesel (ADO) tari ff item number 27100050, Petrol (Unleaded) 
tariff item number 27100010, DPK (Domestic and Jet) 27100030. 
II. REASON AND PURPOSE 
 A. Reason or purpose for establishing and/or maintaining state trading enterprise. 
  In 1998 Samoa commenced a highly successf ul Petroleum Initiative to rationalise the 
national petroleum supply and distribution system.  This initiative which is now 
known in the region as "The Samoan Model" of oil industry operations, has been implemented over two rounds of National Supply and Distribution Agreements.  
Through a tendering process the Government  appoints a supplier for the supply of 
bulk fuels and a distributor to provide support services in the purchase of the bulk 
fuels from the supplier.  The Government is the owner of all terminal assets 
associated with Fuel Storage Facilities in Samoa. 
  The main purpose for maintaining state trad ing enterprise is to sustain the supply and 
distribution arrangements and services in providing the fuel to the nation in the most efficient manner and reasonable cost. 
 B. Summary of legal basis for granting the relevant exclusive or special rights or 
privileges, including legal provisions and summary of statutory or constitutional 
powers. WT/ACC/SAM/18 
Page 2  
 
    Section 4 of the Petroleum Act 1984 gives exclusive power to the Chief Executive 
Officer of the Ministry of Finance to ente r into contracts and determine the conditions 
of any tender for the supply of fuel oil or  petroleum to the Government of Samoa. 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
 A. Summary statement providing overview of operations of the state trading enterprise. 
  Exxon Mobil is responsible for the supply of  bulk fuel into the country and Petroleum 
Products Supplies Ltd. is responsible for all support services for the distribution of fuel in the country. 
 B. Specification of exclusive or special right s or privileges enjoyed by the state trading 
enterprise. 
  The supplier has exclusive right to su pply diesel (ADO), unleaded petrol (ULP) and 
dual purpose kerosene (domestic and jet) and the distributor has exclusive rights to distribute these products to the nation. 
 C. Type of entities other than the state trad ing enterprise that are allowed to engage in 
importation/exportation and c onditions for participation. 
  There are no entities allowed to engage in  import and export other than Exxon Mobil. 
 D. How import/export levels are established by the state trading enterprise. 
  Depending on the demand but the distributor is obligated to have a minimum reserve 
stock level of seven days supply cover. 
 E. How export prices are determined. 
  Samoa does not export oil and petroleum. 
 F. How the resale prices of imported products are determined. 
  The sale prices are set by the Ministry of Finance based on the world market prices 
taking into account taxes and freight costs.  These prices are fixed for the whole month. 
 G. Whether long-term contracts are negotiated by the state trading enterprise.  Whether 
the state trading enterprise is used to fulfil contractual obligations entered into by the 
government. 
  Five-year contracts are currently adhered to  and the Government is satisfied with the 
services provided by the trading enterprise. 
 H. Brief description of market structure.  
  There is one supplier and one distributor  appointed through the tendering process for 
a five-year term. 
 
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